Taco Bell: The breakfast opportunity Harvard Case Solution & Analysis

Taco Bell: The breakfast opportunity Case Solution

INTRODUCTION

Taco Bell company is fast food large US brand; it is best known for its late-night Fourth Meal concept. Taco Company is now adding the new line in their business that us breakfast food in order to achieve the growth, the company is offering completely new meal occasion with incredible potential. However, there were also indicate that this new business line will increase the cost and get people to change their morning routine would be more difficult. Taco Company has long been known for its low prices and value items.

SITUATION ANALYSIS

EXTERNAL ANALYSIS

Opportunities:

  • Customers become bored with McDonald's breakfast, and Taco Company is providing the wide range of the breakfast. Customers desire for a new test so that Taco Company provide Mexican food with the wide range of breakfast menu to the customers.
  • The company is providing their product at Low price, which increased the customers and profitability of the company.
  • The taste of the breakfast was unique which create loyal customers, and they are willing to pay the high price.
  • The company can create the franchise in many different countries.

Threats:

  • King of the breakfast industry is McDonald’s! The Taco Company has no any main competitor.
  • The MacDonald’s is very well entrenched in the Indian market and have a good share of the consumer’s mind.
  • The many competitors were providing home delivery which affects the customers of the Taco Company.
  • Harm full impact of the fast-food.
  • When the company is offering in India, the people of the India have not much awareness about Mexican food. Which decreased the profitability of the company

INTERNAL ANALYSIS

Strengths:

  • The company is providing unique taste to their customers and create a strong brand image
  • the company has good supply chain
  • The company is offering Attractive pricing to the customers which increased the number of consumers.
  • A subsidiary of Yum! Brands: strong name value
  • The company is providing low-fat line product. So that fat customer can also become attractive.

Weaknesses:

  • The company has low power international market share the reason is it has a low number of a franchise than their competitors.
  • In 2011 the company was hit with a class-action lawsuit which decreases the sales of the company by 1.4%.
  • The worker of the company Protest, which create bad publicity for the company due to these incidents
  • The company discontinues the children’s meals, as children are the main target customers of the fast food.

KEY MARKETING ISSUE

The Taco Company is faced three challenges in the breakfast line

OBJECTIVES

  • As the company is providing Mexican food The Taco Company has to change the breakfast routines of the customers.
  • A breakfast plan would have to win over franchisees, without this support company will not able to succeed.
  • The company has to maintain the advertising over the longer period of the time; there are many competitors the company has to keep heavy advertising.

EVALUATION OF ALTERNATIVES

ALTERNATIVE 1: E-business and social media marketing:

As the Taco Company went to traditional advertising such as door to door, advertise newspaper. No a day's social media is the modern tool to provide their massage to their target customers. The company has to advertise on the social site, the target customers of the company product are young age group the company so that social site will be the good way to advertise their product and attract their consumer. In addition to, the company has to provide the home delivery to the customers, so that customers become more attractive................

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